The short answer
After you are licensed, you cannot sell a specific insurance company's products until you are contracted and appointed with that carrier. Contracting is the process of establishing your authorization to sell a carrier's products and receive commissions, and it involves an application, background and license verification, and often product certifications. Because carriers review each application and verify your credentials, contracting can take days to weeks. So being licensed is necessary but not sufficient — you also need carrier contracts for each company whose products you want to offer.
So contracting is how you get authorized to sell a carrier's products and earn commissions, a step beyond licensing that takes time.
Why it takes weeks
Carrier contracting involves submitting an application through your upline, verification of your license and background, agreement to the carrier's terms, and completion of any required product certifications. Carriers process these applications and conduct their reviews, which introduces a waiting period, and Medicare carriers add annual certification requirements. Planning ahead of selling season is important so your contracts are ready. Our guide to choosing a Medicare FMO covers the upline that facilitates contracting, and our join our team page covers support.
The verification, terms agreement, and certifications, each processed by the carrier, are what stretch contracting over weeks.
How to manage it
Start contracting well before you need to sell, work with an upline or agency that helps submit and track your contracts, and complete required certifications promptly. Keep your licenses and information current to avoid delays. A supportive agency streamlines contracting with multiple carriers so you can offer clients choice. Our join our team page explains how we help agents get contracted efficiently.
The takeaway: contracting authorizes you to sell each carrier's products and takes days to weeks, so start early and work with an upline that helps you get contracted and certified.
Frequently Asked Questions
What is carrier contracting?
The process of getting authorized to sell a specific insurance company's products and receive commissions, involving an application, license and background verification, and often product certifications.
Why does insurance contracting take weeks?
Carriers verify your license and background, process your application, and require certifications, all of which take time. Medicare carriers add annual certification requirements, extending the timeline.
Do I need to be contracted with every carrier?
You need a contract with each carrier whose products you want to sell. Being licensed is necessary but not sufficient; contracting authorizes you for each specific company.
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